Digital fashion is alive and well for Gen Z

To become a Vogue Business Member and receive the Technology Edit newsletter, click here. Amid reports of disappointing metaverse experiments, lonely virtual worlds and a hype cycle that has moved on to artificial intelligence, Gen Z is still spending time in digital spaces and buying and wearing digital fashion — at least according to a Roblox report on its 70 million daily active users. People between the ages of 17 and 24 are the platform’s fastest-growing demographic, and they can offer crucial insight into what this demographic wants from brands in this new realm. Increasingly, they want branded attire that relates to what they wear physically, and they want to regularly modify their appearances down to the hairstyle and body type. In the first nine months of this year, Roblox says it saw 165 billion total avatar updates (up 38 per cent this year), and its users purchased 1.65 billion digital fashion items (up 15 per cent). “They are not just picking one look, but rather they are experimenting,” says Christina Wootton, chief partnerships officer at Roblox, which is a virtual world platform. “When brands hear those numbers — that the community is researching and purchasing every day — this is something they want to lean into.” In the past year, brands have streamlined their focuses toward more practical technologies as metaverse hype has quieted; this means that experimental metaverse and gaming projects are often viewed through a less forgiving lens — if they are still on the table at all. Global Google searches for “metaverse” have significantly declined since a high in January of last year, and adoption isn’t living up to the hype, says analytics firm Globaldata. Still, revenue is slated to reach $400 billion by 2030, up from $48 billion last year, it predicts. Meanwhile, the global gaming market is expected to reach more than $665 billion by 2030, up from $282 billion this year, says Fortune Business Insights. Wootton’s belief is that Gen Z isn’t so busy categorising Roblox as being part of the so-called metaverse. “It’s not a metaverse platform that popped up and was just a trend. They really understand this platform, and the behaviour has been there for over a decade, so I think they think of it a little differently.” Earlier this week, Roblox stock saw a big jump after it reported that its third-quarter revenue had beat estimates and users were up 20 per cent compared to a year ago; revenue was $713.2 million, compared to $517.7 million a year ago. To better understand what Gen Z wants in terms of dressing their avatars, Roblox conducted a survey of 1,545 people between the ages of 14 and 26 living in the United States and the United Kingdom who self-reported that they are active in virtual worlds, not exclusive to Roblox. Roblox also looked at behavioural data from 2023 up until the end of September. The study found that more than half of Gen Z users are willing to spend up to $10 each month styling their avatar, while 19 per cent are willing to spend up to $20 and 18 per cent are open to buying up to $50-$100 worth of items every month. The research emphasised just how much digital self-expression has become important to this demographic, Wootton says, as more than half of those surveyed said that styling their avatar is more important to them than styling themselves in the physical world (compared to 42 per cant last year, the first year that this type of survey was conducted). Meanwhile, 85 per cent think that the importance of digital fashion has grown in the past year, despite hype fatigue. Gen Z’s approach to metaverse spaces and games isn’t relegated to the digital realm. Physical trends are influencing avatar style, and digital style is influencing what people buy and what they want to look like. At least 84 per cent of Gen Zs surveyed say that their physical style is at least somewhat inspired by what their avatar and other avatars wear. Avatars have inspired them to change their hairstyles, wear bolder fashion and even become more comfortable dressing in more gender-fluid styles in the physical world. Additionally, 84 per cent say that they are at least somewhat likely to consider trying a brand in the physical world after wearing or trying on a brand’s item virtually. Digital self-expression and authenticity in immersive spaces aids mental health, Wootton adds, with 88 per cent saying that expressing themselves in these spaces has likely helped them comfortably express themselves in the physical world. They also say the metaverse feels “less judgemental”. As Roblox’s avatar ecosystem matures, including new layered clothing options, more diversity in avatars’ body types and more ways to communicate on the platform, Gen Z’s interest increases. To appeal to Gen Z, the most successful brands defer to the community, rather than leading with their own preferences. Wootton, who works with brands on developing their Roblox strategies, says that they have begun listening more closely to creators. “Gen Z wants to have influence over what they wear and they want brands to listen to them. There is a shift in how people communicate on immersive experiences and how brands see the future of engaging with Gen Z and staying relevant. They are no longer putting something in front of an audience and hoping it works.” What fashion should know Brands often approach virtual worlds as a marketing opportunity for engaging the potential next generation of consumers, in the hopes that digital interest will eventually convert into physical sales. Tommy Hilfiger, Gucci, Nike and Ralph Lauren are among the top fashion brands to invest heavily in the platform. Roblox’s research has found that brand recognition matters, and that it converts into influencing purchases. Three out of four Gen Z say wearing digital fashion from a recognised brand is at least somewhat important to them; this is especially true for the 22-to-27-year olds, Wootton says. Forty-three per cent are looking for “twinning” items that they can wear both digitally and physically. Clothing is the most important avatar element to update regularly for 70 per cent of Gen Z. Just like in the physical world, people in virtual worlds value limited edition pieces and exclusivity. Roblox has a category of items called “limiteds”, available only in small quantities for certain periods of time. Often, these items are resold among peers for more than their original price. This is why a limited-edition digital Gucci bag ultimately resold for the equivalent of thousands of dollars on Roblox in 2020, and why a digital Carolina Herrera gown (originally worn by model Karlie Kloss on the runway) resold for $5,000. Roblox recently expanded what types of creators can sell limited items, and has found that the majority of community-created “limiteds” are resold for more than their original cost. Many of the top trends on social media and among celebrities in the physical world are also top trends in digital fashion. The top five trends highlighted by Gen Z were “Y2K”, pink, neutral colours and beige, cargo pants and sheer dresses. Cultural moments are also reflected digitally; this year, mermaidcore meant that purchases of items tagged with “mermaid” increased by 182 per cent. The beauty opportunity Hair colour, skin tone, body size and makeup decisions are incredibly important to Gen Z in the metaverse, so they want a number of options for personalising and updating these attributes. Brands can tap into this need digitally, even if they don’t offer comparable products physically, Wootton notes. When asked which avatar options help people feel fully represented, hair, skin tone, facial attributes and body size were all rated at least “somewhat important” by about 90 per cent of users. Avatars can even buy lash extensions; creator Jenni Svoboda has sold “hundreds of thousands” this year. About half of the female survey respondents say that it is important to customise their avatar makeup often (that falls to 35 per cent for all respondents). Already on Roblox, brands including Fenty Beauty, Elf, Givenchy Beauty, Maybelline, Nars Cosmetics, Nyx Cosmetics and L’Oréal have a presence; similar to fashion brands, some have invited endemic creators to co-create products. Hair is especially important, and it’s easier to change hairstyles in the metaverse. On average, female users bought an average of five hairstyles in the first nine months of this year (male users bought three, and users who didn’t specify gender bought four). This translates into more 139 million purchases of hairstyles in the first nine months of the year (which is 20 per cent more than last year), including more than seven million users who bought five or more hairstyles. Wootton encourages brands to continue to explore new product categories; in addition to hair, makeup and accessories, there are even special “emotes”, which are movements that people can buy, such as special dances. Both Elton John and Tommy Hilfiger have seen success with special emotes. Gucci has offered limited edition ice cream cones, hats and hair items, often offered as awards for completing various challenges. A total supply of 30,000 Gucci Ancora ice cream cones were “served” within eight hours. While Gucci might not branch out into physical ice cream cones any time soon, this type of quirky product category illustrates how brand affinity and creativity might lead to success in new ways. Comments, questions or feedback? Email us at feedback@voguebusiness.com.

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